After four consecutive declines, the U.S. producer price index (PPI) for inputs to residential construction less energy (i.e., building materials) rose 0.3% in February 2023 (not seasonally adjusted) follow a 1.1% increase in January (revised), as the National Association of Home Builders (NAHB) reports, citing the latest PPI report.
Price growth of goods inputs to residential construction, including energy, gained 0.4% over the month. Prices have increased 2.9% over the past 12 months.
Ready-Mix Concrete
The trend of ready-mix concrete (RMC) prices continued its historic pace as the index increased 0.8% in February after gaining 0.7% in January (revised). RMC prices have increase in all but two months since January 2021.
The monthly increase in the national data was broad-based geographically but was primarily driven by a 4.2% increase in the Northeast. Prices 0.8% in the West, 0.5% in the South, and were unchanged in the Midwest.
Softwood Lumber
The PPI for softwood lumber (seasonally adjusted) fell 0.8% in February – the seventh consecutive monthly decline. Since peaking in March 2022, the index has fallen by nearly half (-47.1%) but is still nearly 20% above the January 2020 level.
Gypsum Building Materials
The PPI for gypsum building materials climbed 0.5% in February after edging down very slightly the month prior. Gypsum products prices are 12.5% higher than they were a year ago but began stabilizing in August 2022. Prices have been stable – up just 0.7% – in the six months since.
Steel Mill Products
Steel mill products prices increased 2.6% in February, more than offsetting the 2.4% decline seen the month prior. This was the first monthly price increase since May 2022. Even so, prices have dropped 26.0% since May 2022 and are down 21.2% over the past 12 months.
